What Does Luxury Car Tax Mean?

[OIan]

Here is relevant information about the luxury car tax: 1. Introduction: The luxury car tax is an additional consumption tax on luxury vehicles introduced by the government starting from December 2016, also referred to as a luxury tax. The luxury car tax rate is 10%, with the main purpose of adjusting product structure, guiding consumption direction, and promoting energy conservation and emission reduction. 2. Calculation Method: In China, a 10% luxury car tax is levied on vehicles priced above a certain threshold. For some models, the value-added tax (VAT) is 117%, while the luxury car tax rate is 10%. The calculation formula is: taxable amount equals car price divided by VAT multiplied by the tax rate.